MasterCard 2009 Annual Report Download - page 113

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
The Company uses a December 31 measurement date for its Postretirement Plan. The following table
presents the status of the Company’s Postretirement Plan recognized in the Company’s consolidated balance
sheets at December 31, 2009 and 2008.
2009 2008
Change in benefit obligation
Benefit obligation at beginning of year ......................................... $59,949 $ 51,598
Service cost ............................................................... 1,734 1,951
Interest cost ............................................................... 3,625 3,288
Plan participants’ contributions ............................................... 149 74
Actuarial (gain) loss ........................................................ (7,634) 4,564
Gross benefits paid ......................................................... (2,133) (1,582)
Less federal subsidy on benefits paid ........................................... 2 56
Enhanced termination benefits ................................................ 3,944 —
Projected benefit obligation at end of year ....................................... $59,636 $ 59,949
Change in plan assets
Employer contributions ..................................................... $ 1,982 $ 1,452
Plan participants’ contributions ............................................... 149 74
Net benefits paid ........................................................... (2,131) (1,526)
Fair value of plan assets at end of year .......................................... $ — $ —
Funded status
Projected benefit obligation .................................................. $(59,636) $(59,949)
Funded status at end of year .................................................. $(59,636) $(59,949)
Amounts recognized on the consolidated balance sheets consist of:
Accrued expenses .......................................................... $ (2,644) $ (2,564)
Other liabilities, long-term ................................................... (56,992) (57,385)
$(59,636) $(59,949)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial gain .......................................................... $(13,509) $ (5,874)
Transition obligation ....................................................... 642 856
$(12,867) $ (5,018)
Weighted-average assumptions used to determine end of year benefit obligation
Discount rate .............................................................. 5.75% 6.00%
Rate of compensation increase ................................................ 5.37% 5.37%
The assumed health care cost trend rates at December 31 for the Postretirement Plan were as follows:
2009 2008
Health care cost trend rate assumed for next year .............................. 7.50% 8.00%
Rate to which the cost trend rate is expected to decline (the ultimate trend rate) ..... 5.00% 5.00%
Year that the rate reaches the ultimate trend rate .............................. 2015 2015
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